ON Semiconductor to buy AMIS in all-stock transaction

POSTED: 06:54 MDT Thursday, December 13, 2007

by IBR staff report

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The Wall Street Journal this morning is reporting that ON Semiconductor Corp. will buy AMIS Holdings Inc., parent of AMI Semiconductor, in an all-stock transaction worth about $915 million.

Shareholders of AMIS, a Pocatello integrated circuits maker, will receive 1.150 shares of ON Semi common stock for each share of AMIS common stock they own. Based on ON Semi's closing stock price of $8.22 on Wednesday, it would pay AMIS shareholders about $10.14 a share, a 38% premium over AMIS' closing stock price of $7.35 on Wednesday.

Phoenix-based ON Semi, which makes audio and power management chips used in mobile phones, cars and portable electronics, expects up to $50 million in pre-tax cost savings from the purchase in 2009. Chief Financial Officer Donald Colvin said the acquisition would add to the company's earnings by the end of 2008.

ON Semi may record a one-time charge for costs related to the deal. The amount of that charge has not been determined.

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